The U.S. Department of Justice (DOJ) said a federal grand jury in California indicted Los Angeles resident Marisela Nuno over allegations she sought more than $18 million in pandemic-era business loans using false applications.
The indictment was returned Nov. 3 and announced Wednesday, Nov. 4. Applications sought more than $15.7 million through the Paycheck Protection Program (PPP) and more than $2.6 million through the Economic Injury Disaster Loan (EIDL) program, both authorized under the Coronavirus Aid, Relief, and Economic Security Act.
DOJ alleges Nuno applied on behalf of businesses and other entities she purportedly owned, with false details about staffing, average monthly payroll, gross revenue and eligibility. The applications also allegedly included materially false tax records.
Prosecutors say she used loan proceeds for purposes the programs did not allow, including purchasing private property, covering business startup expenses and paying family members.
Nuno faces three wire fraud charges and one money laundering charge. If convicted, she could receive up to 20 years in prison for each wire fraud charge and up to 10 years for money laundering, DOJ said. The indictment is an accusation; Nuno remains presumed innocent, and a conviction would require proof beyond a reasonable doubt.
